* Refunding a payment like this would essentially be like paying out a deposit.

Don't think so... Someone paid that amount of money AND have a receipt for this purchase. If I have this receipt along with a gift card) and I am not happy with product or service i have the right to exchange or return it. If you are buying something in grocery store for example, and you're not happy you will get a refund in just 3 seconds. How this is different i'd like to ask?

If I have this receipt along with a gift card) and I am not happy with product or service i have the right to exchange or return it.

Welcome to last year.

You don't have those rights. If a product is defective, you can insist on a replacement, repair or refund (at the vendors choice). If you think the gift card is defective, they can just issue a new one, but that would be strange.

Giving back money would have the Central Bank very unhappy with people.